Vale has entered into a share purchase agreement with state-owned Dubai Aluminium Company Limited (Dubal), which operates one of the largest single-site aluminium smelters in the world.
The transaction, which is subject to the fulfilment of certain conditions, will see Dubal acquire a 19% stake in Vale’s subsidiary Companhia de Alumina do Pará (CAP), with Vale holding 61% of the total capital of CAP and Hydro Aluminium (Hydro) - one of the largest global producers of aluminium and aluminium products – acquiring a 20% share.
CAP will be responsible for the implementation and operation of an alumina refinery, located in Barcarena, 5 km away from the alumina refinery of Vale’s subsidiary Alunorte. The initial production capacity of this refinery will be 1.86 mtpa of alumina, through two lines, each one of 930,000tpa.
The start-up of the first phase is expected for the end of 2012, according to market conditions, said Vale.
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